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Why invest in singapore (1)
1. Why Investing in Singapore for the next 3-5 years is still a good bet.
Opinion by Colin Tan
ColinTan Training and Consultancy (Updated 5 April 2010)
Introduction
There have been a lot of people coming out to speak about the Singapore
property market, from analyst to coffee shop talk, many with differing opinions.
However, the common take is that the market has reached its saturation point.
In this article, I hope to bring some light into the Singapore property market and
as far as I can see, I do feel that the property market will continue to rise for a
good 3 to 5 years at least (especially in high end market)
In 2005, I said that the prices of landed properties in Sentosa would eventually
become more expensive than Good Class Bungalows (GCB); many people
industry thought that I’ve lost it. Today, considering the sizes as well as the 99-
year tenure of these Sentosa landed homes, they are truly more expensive than
GCB.
The Reasons
Globalisation
With globalisation and the increase in travel, a new breed of people known as the
‘Global Citizens’ are born. These are the people who have a majority share of the
wealth in the world and are major investors and buyers of all the high-end
properties from around the world. It is widely accepted that 20 percent of the
people in the world own eighty percent of the wealth. These people will play a
very major role in influencing the price of properties in the high-end property
market in Singapore as they have done globally.
How are high end property prices determined globally?
Simple, demand and supply.
A lot of people seem to hold to the idea that the prices in the high end market will
invariably pull up the prices of the mass property market. Because of this theory,
they cannot envisage the property prices in the mass market becoming out of
reach to the masses; and since the theory is that the prices for properties in the
high-end and mass market is somewhat connected, these people feel that the
prices for the high-end property market cannot go too high as it is unthinkable for
the prices in the mass market to be beyond the reach of the middle-class.
This is like saying that the prices of Nissan would be affected by the increase of
prices for Bugatti or Ferrari. Though they are both cars, the profile of their buyers
cannot be more different. The buyers for properties in the mass market are
average guys while those in the high end market have got nothing to do with the
average guys; they are meant for the super rich! What the super rich buys will
Copyright 2007 ColinTan Training & Consultancy
2. have no effect on prices of products that the average guys buy in most cases
including property.
Some would argue that the measures and government policies like CPF,
Deferred Payment Scheme and other changes that have been implemented is a
sign that the government is trying to control the price of property in general. Well,
if you read between the lines, these measures are really meant to control the
property prices in the mass market. It is easy to understand the need for these
measures as we do not want the prices of properties to be out of reach for the
average Singaporean. However, I believe the government is not really bothered if
the rich wants to pay $1.5M for a car or $15M for an apartment.
Another factor that a lot of people look to is the historical performance as a
gauge of the property market and its potential growth. This is by far one of the
most ridiculous ways to determine the property market’s potential. It is often
heard that just because Singapore has never experienced property prices at a
certain level; therefore once that level is breached, you’d expect prices to drop.
How can this argument be true? One must understand that the Singapore ten
years ago is not the same with the Singapore of today and the Singapore three to
five years from today will not be the same as the Singapore today. The
Singapore government has undertaken to transform Singapore to a lively and
exciting city to attract the global citizens and the world’s rich.
The Singapore of the past used to be boring, sterile and unattractive to the global
citizens and other foreign talents that the Singapore government has been trying
to woo for years. In recent times, the Singapore government has begun to realize
that governmental, social and economic stability is not enough to woo these
people. They’ve finally realized that men truly do not grow up, they just get old
and that boys do wanna have fun!
Since then the government has taken many bold steps to transform Singapore
into a playground; not just for the masses, but for the very rich and famous. Their
aim is for Singapore to become like Tokyo, Hong Kong, New York, London, etc.
When that happens, the property prices will match that of those cities mentioned
above. These super rich will come in to buy properties in our city as they choose
to spend more time here. These super rich will compare the prices of properties
to cities that have similar appeal and demand by other super rich and that, by the
way, is the fundamentally correct way of determining the prices of properties from
around the world. Therefore the prices may even reach levels of between $7000
psf to $10,000 psf.
Who are the people who pay S$10,000 to S$15,000 psf for properties in London,
New York, Hong Kong, Moscow and so on? You got it, they are the same guys
around the world; the same guys that drove the prices up in the high end markets
Copyright 2007 ColinTan Training & Consultancy
3. in these areas. If they start to feel that Singapore is like a second home, they will
come.
Let’s examine the factors that will transform the city of Singapore.
Transforming factors
Below are some of the changes that have taken place over the last few years
which shows the government’s relentless effort to turn Singapore into a very
attractive and fun to be in city like that of the many major cities in an attempt to
stop the brain drain and to attract foreigners that can contribute to the
development of Singapore.
As I expand on some of the points below, you will start to see a little bit of
London, New York, Hong Kong, Sydney, etc.
Transforming the city to a vibrant and lively place to work, live and play.
1) Allowing commercial properties to be redeveloped into residential
properties to encourage more people to live and play in the city and
hence bringing life to the city. This is still in the transition stage as many of
the developments are not completed yet. At the moment the government
has temporarily stopped allowing commercial properties to be redeveloped
into residential properties in an attempt to counter the shortage of
commercial properties due to the current economic climate. When more
residential properties are completed and occupied, our city will be a very
beautiful and lively place similar to Hong Kong, New York etc.
2) More Lifestyle Homes Meant for The Super Rich
With the release of land in Sentosa to cater to homes meant for the Super
Rich and allowing foreigners to buy these properties and at the same time
giving the buyers Permanent Residence status, the sign is non clearer that
we are going all out to attract not only the super rich from the west, but
also the new super rich from China, India and all of Asia.
3) Theatres and the Development of the Esplanade Theatre (a little bit of
London, Broadway, etc) a-la the Sydney Opera House and encouraging
more performing artistes and talents to Singapore and also relaxing the
immigration policies to encourage these group of people to come. It is no
secret that the theatres are very important way of life to the Global
Citizens.
4) 24-hr licensing for watering holes to promote Singapore as a fun place.
We’ve also seen more international names like Café Del Mar, MOS, etc
coming to our shores. Zouk Out has been recognized internally for some
time now while we also have WOMAD. What makes it so important for the
government to have to spend precious time to deliberate on whether to
allow for pubs and discos to be opened for 24hrs?
Copyright 2007 ColinTan Training & Consultancy
4. 5) Change in Censorship Ratings
In 2004, The Singapore
Government changed the
censorship policy by allowing
ratings like M18 and R21. This
is also a clear sign of us moving
towards being a truly Global
City
6) 360 hectares development of the Marina Bay area to Explore,
Exchange and Entertain (a little bit like Central Park or Hyde Park)
Marina Bay – Garden City by the Bay
“Located at the Southern tip of Singapore, Marina Bay is a 360ha
development designed to seamlessly extend Singapore’s downtown
district and further support the city-state’s continuing growth as a major
business and financial hub in Asia.
A greenfield site surrounded by water and gardens, Marina Bay provides
an opportunity for further urban transformation, attracting new
investments, visitors and talent, as well as becoming a new destination for
the local community.
Marina Bay has been designed with people in mind, with a 24/7 vibrancy
that will include the highly anticipated Integrated Resort (a destination
attraction offering world-class hotel, convention, leisure and entertainment
facilities, and casino) as well as other residential, commercial and
entertainment developments.
Marina Bay will be a place for people from all walks of life to explore,
exchange and entertain. There will be apartments set amidst lush
greenery near Singapore’s waterfront. The local community and visitors
alike can enjoy the parks, waterfront promenade and attend the events
and celebrations held at the Bay. State-of-the-art office space and
Copyright 2007 ColinTan Training & Consultancy
5. transport infrastructure will provide seamless connectivity for companies
and professionals to grow and exchange business ideas. It will be place
with a loop of attractions and round-the-clock energy that continues during
and outside office hours.” http://www.marina-bay.sg/explore.htm
7) Singapore Flyer (a little bit of London)
“The Singapore Flyer will transform the visual landscape of the
surrounding Marina Bay area. In addition to the Singapore Flyer,
construction on Asia's largest business and financial centre has
commenced and a world-class Integrated Resort (casino) is due to start
operations in 2009. The Marina Barrage (a dam built across Singapore's
Marina channel) is also due for completion.”
http://www.singaporeflyer.com.sg
8) Casinos
Singaporeans have been doing fine without a casino on our shores for
over 40 years. So you think that our government spent so much time
debating about the casinos for the entertainment of Singaporeans? No! To
tell the Global Citizens that Singapore is a place like home for them. A
playground for the Rich and Famous!
“In the past year, talk of remaking the Singapore economy has accelerated with plans to
venture into new areas such as promoting the city-state as an educational hub and
medical hub, and most recently it has even begun to step into Islamic finance and
banking
''As other countries begin to catch up, Singapore needs to move ahead constantly to
sustain its competitiveness,'' said Mukul Asher, professor at the new Lee Kuan Yew
School of Public Policy.
''The casino will allow diversification of the economy. Singapore is just trying to have as
many pillars for the economy as they can and they see casinos as one of the pillars that
will sustain future growth,'' he said
And the attraction of casinos is that unlike factories, which are more vulnerable to
restructuring and relocation, casinos tend to be more entrenched investments .
Economists say it also would make Singapore a more attractive place for tourists,
especially tourists from China, which is now one of the fastest growing sources of tourists
for Singapore .
The casino would also be a boost for related sectors such as retail and hospitality and
offers the potential to create more jobs than many of the high-tech manufacturing plants
in Singapore.
Some say a casino would also provide a lucrative new source of tax revenue for the
government, which ran into budget deficits in three of the last four years, and give it
greater leeway to reduce corporate taxes further to maintain economic competitiveness.”
COPYRIGHT 2005 Kyodo News International, Inc.
COPYRIGHT 2005 Gale Group
Copyright 2007 ColinTan Training & Consultancy
6. 9) Integrated Resorts and Theme Parks (a little bit of Hong Kong, Gold
Coast and Florida)
This is another element that is going to change the façade of Singapore
thus making Singapore fun, attractive and recognized internationally; just
like Florida or the Gold Coast are recoginised internationally primarily for
their renown themeparks.
10) Formula 1 (a little bit like Monaco)
The Formula 1 has given Singapore an added buzz. It is definitely a race
that people look forward after the successful race in 2008 as it is the 4th
street race in the 2008 F1 calendar; the other being the Monaco,
Melbourne and Valencia F1. However, the Singapore F1 has been hailed
to be more exciting than Monaco F1 with many overtaking opportunities;
unlike the Monaco F1 which appears more like a glorified procession with
little overtaking opportunities.
It has already been suggested that Singapore’s F1 is the Crown Jewel of
the entire F1 calendar. This will definitely give Singapore a lot of exposure
and give Singapore a lot of appeal.
11) Light Up The City
On the 21 Nov 2006, Our Government announced the plan to incentivised
developers who incorporates external lightings to enhance the nightscape
of the Singapore skyline to transform Singapore into a vibrant and
stunning city like that of Hong Kong, Tokyo, etc.
12) M.I.C.E. – (Meeting, Incentive, Convention and Exhibition)
Singapore has in recent years become a major player in the world for
holding major world events, conventions and exhibitions. In 2005, we had
the 117th International Olympic Council Session where London won the
rights to host the 2012 Olympic Games.
“Over 1,100 (local & international) media personnel representing nearly 330 media
organisations from over 35 countries around the world were covering the event from the
Raffles City Convention Centre during the Session. The significant presence of
international wires and broadcasters in Singapore contributed tremendously to the
Copyright 2007 ColinTan Training & Consultancy
7. extensive 'live' coverage (to 1 billion viewers), which helped put Singapore on the World
map.
The 117th IOC Session started on July 6. On July 9, IOC president Jacques Rogge, in
his closing media conference gave Singapore a big pat on the back the Belgian added,
“All my colleagues were ecstatic about the quality of the organization, the quality of the
hospitality.”
It was the second public commendation Mr Rogge had paid the organizers.
At a dinner for IOC delegates organised by the Singapore National Olympic Council and
the Ministry of Community Development, Youth and Sports, he had this to say of the
hosts:
“You have, what we say in skating, a perfect six.”
As Canadian television said, “A star-studded event has placed Singapore in the centre of
the sporting universe.”
In a report entitled “Singapore A Secret Winner In Olympic Bidding War”, Sid Duguid,
writing in Media, said, “As Paris gave a collective Gallic shrug and London secured the
greatest prize in sport, the award goes to Singapore for hosting the 117th IOC Session. “I
have only respect and admiration for those well-groomed citizens delivered a slick,
stylish and professional event that the world must applaud. ”
(http://www.singapore2005ioc.org.sg/)
In 2006, Singapore hosted the IMF and World Bank meeting of the Board
of Governors.
“Event organisers expected a turnout of about 16,000 delegates and observers, but saw
a record 23,000 delegates and 300 finance ministers registering themselves, the largest
turnout for an overseas annual meeting.” (http://en.wikipedia.org/wiki/Singapore_2006)
13) Singapore – The Biopolis of Asia
“BOSTON, 9 MAY 2007, Singapore continues to thrive as a vibrant location for scientific
talent. Significant efforts and resources have been committed to attract and develop
talent. Singapore adopts a pro-international and pro-local approach. A dynamic research
environment, robust ethical framework, strict laws for the protection of intellectual
property rights and quality of life, are some of the key reasons why a growing number of
scientists are drawn to Singapore.
Over the past five years, Singapore has attracted an impressive list of internationally
prominent scientists to lead the nation's biomedical sciences research and development
efforts.” (http://www.biomed-singapore.com)
Other Bioscience Developments in the news in 2007
18 Dec - Association of Clinical Research Professionals Inaugurates Chapter in
Singapore
5 Dec - Eisai, the First Japanese Pharmaceutical Firm to Open Regional Clinical
Research Centre in Singapore
19 Nov - Hill-Rom Announces Singapore will be Site for Asia-Pacific Innovation Center
Copyright 2007 ColinTan Training & Consultancy
8. 29 Oct - Novartis opens new pharmaceutical plant and intends to build biotech facility in
Singapore
25 Oct - Codexis Opens Singapore Laboratory
24 Aug - Schering-Plough - A Distinguished Partner Driving Singapore's Biomedical
Sciences Sector
21 Aug - Merck & Co., Inc. Opens Asia Pacific Regional Headquarters in Singapore
14 Aug - A*STAR and NUS establish new Clinical Imaging Research Centre with
Siemens as industry partner
23 May - Affymetrix Selects Singapore For Its First Manufacturing Facility Outside The
United States
22 May - West Pharmaceutical Services, Inc. strengthens Asia Pacific presence with
S$45 million investment in Singapore facility
9 May - Singapore continues to attract top scientific talents
8 May - Singapore attracts four major biologics manufacturing investments totaling close
to US$1 billion in less than two years
7 May - World's leading pharmaceutical companies make significant expansions to their
corporate research laboratories in Singapore
4 Apr - Bio-Rad increases presence in Singapore with its first Asia-Pacific manufacturing
facility
29 Mar - Lonza and Bio*One Capital celebrate the groundbreaking of their second
manufacturing facility in Singapore
28 Mar - Singapore Biologics Industry gets boost with Genentech's decision to set up
Singapore's first Microbial-Based Biopharmaceutical Manufacturing Facility
26 Mar - Lilly Expands Drug Discovery Efforts in Singapore
20 Mar - GlaxoSmithKline Opens New Medicinal Chemistry Laboratory at Singapore's
Biopolis to Boost Research Capabilities in Neurodegenerative Disorders
1 Feb - Fluidigm Singapore launches Biomedical Product Development Centre
14) Singapore as an Education Hub of the World
Singapore has always been recognized in the region as having one of the
best educations with probably one of the highest percentage of educated
people over the population in the region as well.
Here are some of the significant developments in the last few years
“The University of Chicago, whose Asia campus sits in a restored 121-year-old traditional
Chinese estate, is just one of a growing field of offshore institutions in Singapore.
Copyright 2007 ColinTan Training & Consultancy
9. Others include France's INSEAD, Johns Hopkins, the Massachusetts Institute of
Technology, Stanford University and Technische Universiteit Eindhoven of the
Netherlands.”
"Singapore is booming. However, its growth as a global economic and business centre
requires the availability of quality international schooling opportunities for the children of
the global talent that Singapore is keen to attract," says Kishore Mahbubani, Chairman,
UWCSEA Board of Governors. "Hence, a second campus will both enable the College to
spread the values of the UWC movement further and Singapore's economy to soar to
greater heights." 1 January 2008
“There was more than one reason to celebrate at the official opening of S P Jain's
Singapore campus. Its presence marks the first Indian tertiary institution to have its own
campus in the Republic. What's more, the school's projected first year student enrolment
has already been surpassed, S P Jain is one of India's top business schools offering
post-graduate programmes in management, with campuses in Mumbai, Dubai and now,
Singapore.” 1 June 2007
“The largest hotel college in the United States, the University of Nevada, Las Vegas
(UNLV), will set up its first international campus in Singapore.” 1 July 2006
“DigiPen Institute of Technology, the renowned American computer animation and
programming school, will establish an Asian campus in Singapore The fruition of this
milestone development will not only make DigiPen Singapore the first and only campus
outside the US, but also the first institution here to offer specialised degree-level courses
for game development. 1 February 2006
“In a move to develop Singapore's global schoolhouse, National Technological University
has signed an agreement with Waseda University to launch a one-year master's degree
programme in business administration This collaboration marks the first time a
Japanese university is offering a degree programme outside Japan Waseda University
joins the prestigious ranks of top international universities that are currently offering joint
degree programmes in Singapore, such as Massachusetts Institute of Technology and
Duke University from the US, and Indian Institute of Technology, Mumbai.” 1 May 2005
15) Singapore as Medical Tourism Hub
Singapore plans to become a leading Medical Tourism Hub lead by
Singapore Medicine, a multi-agency government initiative. Besides direct
economic benefits, spill over should be experienced in the property sector
as well as many other sectors. To reach a level where Singapore can
accommodate the needs of 1 million medical tourists, more facilities would
be needed. Singapore would also see an increase in expatriate doctors,
nurses, support and administrative staff. That would mean an increase in
demand for properties for purchase or rent.
WHO Rates Medical Tourism in Singapore
Singapore: A Leading Medical Tourism Hub
“The tiny island nation of Singapore has emerged as an Asian medical tourism hub in the
past decade. With an average of 200,000 patients arriving for treatment annually, its
Copyright 2007 ColinTan Training & Consultancy
10. revenues from medical tourism stand at US $3 billion. The healthcare offered by this
nation is the envy of Asia. Singapore prides itself on its 11 JCI accredited hospitals and
world-class expertise in all fields of medicine.
Singaporean healthcare attained its zenith when its doctors successfully performed a 90-
hour long operation to separate conjoined twins. It was an unprecedented procedure and
effectively heralded Singapore as a leader in healthcare and medical tourism.”
(http://www.healthmedicaltourism.org)
Medical tourism boom takes Singapore by storm
The tiny island of Singapore, having a populace of 4.4 million, is fast positioning itself
as a medical tourism hub. Attracting about 200,000 overseas patients every year,
Singapore Medicine, a multi-agency government initiative, is strategising to increase the
number manifold. The authorities are ambitious of serving one million foreign patients
annually by 2012 and generate USD 3 billion in revenue The private sector hospitals
here are the true centres of excellence known for providing world class treatment and
having state-of-the-art infrastructure and the best possible medical expertise.
(http://www.expresshealthcaremgmt.com)
16) Population Increase to 6.5 Million
With the government’s attempt to increase the population to 6.5 million
people, we’ll invariably see an increase in demand for property in the
mass market as well as the central districts mentioned.
Singapore will benefit from this critical mass increase with the increase in
the consumer market. From many of the initiatives above, we’re already
seeing an influx of many highly qualified people coming to ply their trade in
Singapore; with the increase in the consumer market, more business
setups would be seen in the next few years to take advantage of this
accelerated population growth. Even though you’d expect most of the
demand from these new Singapore citizens, permanent residents and
expatriates to be for properties in the mass market, many of the
businessmen, CEOs and the rich who start or relocate their business to
Singapore would be more interested in the properties located in the
financial, shopping and lifestyle districts thus driving the prices up further.
17) Strong Economic Climate
Singapore Retains Title as the World’s Busiest Container Port for 2007
SINGAPORE has narrowly retained its standing as the world's busiest container port,
after staving off a strong challenge from booming Shanghai.
'The past few years have been bountiful for the maritime industry in Singapore and
2007 was no exception,' said Transport Minister Raymond Lim, adding that the local port
was tops as well in terms of bunker, or ship fuel, sales and vessel calls. 'Singapore
continues to maintain its leading position
The Straits Times, 11 January 2008
Copyright 2007 ColinTan Training & Consultancy
11. Singapore enjoys steady flow of billion-dollar investments
Global big names ranging from drug maker Novartis to oil giant ExxonMobil put down
huge sums on big investments in Singapore, including bricks-and-mortar assets as well
as research and development activity. GABRIEL CHEN assesses some of these mega
deals FINLAND'S Neste Oil is investing 550 million Euros ($1S.15 billion) to build a
biodiesel plant in Tuas, which will be the world's largest.
The Straits Times, 27 Dec 2007
S'pore more attractive as hub for MNC manufacturers: US
US Commerce Dept attributes this to implementation of bilateral free trade pact
Singapore has become even more important to American multinational corporations as a
manufacturing hub, according to the US Department of Commerce As reported earlier
in BT, US MNCs' net income in Singapore ($18US.2 billion) in 2005 was the largest for
US MNCs in Asia US MNCs' value added in Singapore is larger than in China
($14US.61 billion), which has become the world's factory. It's the third largest in the
region, behind Japan ($47US.86 billion) and Australia ($31US.74 billion). US MNCs'
value added here accounts for 15 per cent of Singapore's GDP. Business Times, 18
December 2007
Singapore is the most cost-competitive place for business
Source: KPMG Competitive Alternatives Study, 2006
According to a study by accountancy firm KPMG, Singapore is the most cost-competitive
business location among nine industrialised countries.
The bi-annual study - which covers 128 cities in nine countries - indicated that Singapore
was 22 per cent cheaper than the benchmark United States.
KPMG's 2006 Competitive Alternatives study analyses 27 cost components, including
wages, freight, business taxes, rent and utilities.
Singapore is the World’s easiest place to do business
Source: World Bank report: "Doing Business 2007: How to Reform"
Singapore is the "Best Business Environment" spot in Asia Pacific
Source: EIU Country Forecast, January 2007
nd
World's 2 Most 'Network Ready' Country
Source: Global Information Technology Report 2005/06, World Economic Forum
nd
Singapore: 2 Most Technologically Ready Nation in Asia
Source: Global Competitiveness Report 2006-2007
Most competitive Asian Economy and 2nd most competitive economy in the World
Source: World Competitiveness Report 2007
Best Labour Force in the World
Source: BERI's 2007 Labour Force Evaluation Measure (LFEM) report
Singapore: 1st in the World for Quality of Air Transportation
Source: World Competitiveness Yearbook 2006
Singapore is World's Most Globalised Nation
Source: A.T. Kearney/FOREIGN POLICY Magazine Globalization Index 2006
Singapore Ranks No. 1 in Perceptions of Corporate Governance Standards
Source: Political and Economic Risk Consultancy, June 2006
Copyright 2007 ColinTan Training & Consultancy
12. See the latest of the rankings at:
http://www.sedb.com/edb/sg/en_uk/index/why_singapore/singapore_rankings.html
Other Telltale Signs
18) Fund Manager’s and Investors’ Activities
In recent times, we’ve seen more and more properties bought in volume.
Many of these buyers are fund managers and large investors. On top of
that, we’ve seen more buyers of diverse nationalities flocking to
Singapore; people from the US, the Europeans, etc. In the past we don’t
see as many of these people. In the past, most of the people who bought
properties in Singapore tended to come mostly from Indonesia and
Malaysia whilst the Americans and Europeans would probably bought
properties here more for their own use and not so much like now where
they are buying to invest.
19) Lack of Disparity in price between the prices of properties in the
mass market compared with the high-end market
Another sign that I feel is a good indication that the prices of properties in
our financial, shopping and lifestyle district can go up much more is the
lack of sufficient disparity between the prices in the mentioned regions
versus the mass market property prices.
In many developed economies, you’d find property prices in the high-
market to be ten times or more that of the mass market.
I.e. today, you would need to pay as much as ₤6000($18,000) per square
feet for a property around Knightsbridge in London and for a small cottage
in a suburb half hour away, you probably only pay the price of an HDB flat.
In KL, a similar condominium costing RM$2,000,000 would probably go for
RM$200,000 around the Ampang area. The difference is 10:1.
Therefore based on the examples above, it would not be surprising to find
that the prices for properties in the suburb to remain around $1,000 per
square foot and below while the prices for properties in the 3 major areas
to go up to $10,000 per square foot.
20) Interest Rates
Finally, another telltale sign is the interest rate. Interest rates normally
would rise with the prices of properties. In most developed countries you’d
see interest rates for mortgage to be from 5% to 10%. At our peak, we’ve
seen ours to be about 7%. Right now, interest rates are still hovering
Copyright 2007 ColinTan Training & Consultancy
13. between around 2 odd percent. My gut feel is that there’s still more room
for growth; including the price of properties in the three main regions.
Conclusion
Many people looking at the current readjustment as an indication that the
price of property has reached saturation point. I feel that nothing is further
from the truth
Many of the government initiatives, redevelopment of certain areas,
vibrancy to the city, Singapore as a fun place to live, IRs, population
increase etc are all still ‘under construction’ and we cannot feel the real
impact until everything thing is in place. But do you want to wait before
that happens? Analyse the above 20 points I’ve given and you can decide
for yourself.
You may already notice that I’ve been talking about the three main
regions. That’s why you’ always hear people say that when buying a
property, must consider 3 things; location, location and location.
However, it’s not all doom and gloom for the mass market. One major
factor that would contribute a little (you notice I said ‘a little’) to the
increase in the prices for the mass market properties would be the
increase in our population.
As for the three regions, I won’t be surprised to see the prices soar
between $7,000 to $10,000 per square foot and even more.
Copyright 2007 ColinTan Training & Consultancy